Blockchain: Bank of Montreal and Ontario Teachers Launch Fixed Income Pilot Project

According to a Bloomberg report of August 15 The Bank of Montreal and the Ontario Teachers' Pension Plan tested a Canadian dollar debt deal using Blockchain.

A pioneering initiative based on the Blockchain

The Financial Markets Division of Bank of Montreal (BMO) announced the launch of the first transaction using Blockchain technology for a Canadian dollar transfer transaction.

The fixed income securities issue includes the financial institution as an issuer. The Ontario Teachers' Pension Plan will be the purchaser of C $ 250 million annual floating rate deposit notes (approximately US $ 190 million).

Although the pilot transaction has been accounted for as a traditional issue through the Canadian Deposit Bond, it will take place on a Blockchain platform.

Enjoy the benefits of emerging technology

Issuers and buyers will be free to follow transactions with the Blockchain. It will be used to ensure cost savings in terms of compliance, financial reporting, clearing and settlement of transactions.

Kelsey Gunderson, the head of capital markets trading at BMO explained:

"This is an important first step in the development [...] which we believe will eventually enable primary and secondary trading of securities. "

A similar initiative was developed using the US dollar earlier this year. JPMorgan Chase, the National Bank of Canada and other organizations used the Blockchain Quorum platform for the US $ 150 million transfer from the Canadian bank "on the same day of a Yankee floating rate certificate of deposit. "

What do you think of the Blockchain initiatives of the Bank of Montreal and the Ontario Teachers' Pension Plan? Let us know in the comments below.

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Posted from my blog with SteemPress : https://infos.link/blockchain-bank-of-montreal-and-ontario-teachers-launch-fixed-income-pilot-project/

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